BCDA signs three lease deals worth P85m for leisure projects in Clark and Baguio
The Bases Conversion and Development Authority has signed three lease agreements with private developers committing at least P85 million for leisure, tourism and dining projects in Clark and Camp John Hay. Property consultants say the long-term government leases help developers reduce upfront land c
The Bases Conversion and Development Authority (BCDA) has signed three lease agreements involving at least P85 million in private investment commitments for leisure, tourism and dining developments in Clark, Pampanga, and Camp John Hay in Baguio City. The agreements comprise a 15-year lease with Grace Farm Nature Resort Corp., which committed at least P50 million for a leisure and recreational development in Clark; a 10-year lease with Zoo and Theme Park Services, Inc., which committed at least P20 million for an educational family adventure park in Camp John Hay; and a lease with Anrey, Inc., which pledged at least P15 million for a 500-square-metre Sizzling Plate restaurant in Camp John Hay.
Property consultants said the long-term leases of government-owned properties could help leisure developers reduce upfront land acquisition costs and allocate more capital to project development. Savills Philippines Research Manager Jamie Dela Cruz noted that government-owned properties can be attractive to leisure developers, particularly given the sizeable government landholdings that can accommodate large-scale developments. “Leasing also allows developers to access substantial land areas without the significant upfront capital investment required for outright land acquisition,” she said, while adding that the financial attractiveness of these arrangements would depend on lease duration, rental rates, renewal provisions and government approval processes.
Cushman & Wakefield Philippines Director for Research, Consulting & Advisory Services Claro dG. Cordero, Jr. said government leases change the math for leisure developers by allowing capital to go into the product rather than the land. “With borrowing costs elevated, that capital efficiency is a decisive advantage over outright purchases in Northern Luzon,” he said. However, he cautioned that the trade-off is tenure: lessees build value in operations, not in land, so returns must be earned within the lease window.
The consultants said the planned leisure developments could support tourism activity in Clark and Baguio, although their impact on surrounding property values and commercial rents would depend on actual visitor demand. Mr. Cordero described the projects as “demand catalysts, not price shocks”, adding that a P50-million nature resort and a 5.8-hectare adventure park give visitors more reasons to come and stay longer, which supports hotel occupancy and weekend room rates before it moves land values. He said initial benefits could be felt by food and beverage establishments and convenience retailers near the developments.
Ms. Dela Cruz said the projects could further strengthen the appeal of Clark and Baguio as established tourism destinations, with increased visitor arrivals and spending potentially supporting rental rates and property values over time. The consultants also noted opportunities for leisure developments outside Metro Manila, supported by domestic tourism demand. Mr. Cordero said developers are increasingly exploring experiential and nature-based projects that cater to families and domestic travellers, and that master-planned estates offer access to land, controlled environments and a single landlord, making them suitable for leisure developments.
